Taxes—one of life’s inevitabilities. The maze of tax rules and forms to wade through can seem overwhelming. Doing your taxes can be a challenge, but the Internal Revenue Service (IRS) has simplified the process for most taxpayers, and there are many organizations that offer free taxpayer assistance. Today, nearly 60 percent of the 140 million tax returns filed each year are filled out on a computer, either by a tax professional or by the individual taxpayer.* Very few people still fill out a tax return with a pencil.
Doing Your Taxes
Because mistakes on your tax return can cost you — time and money — it’s important to take advantage of all the available resources. You have some options. You may want to hire a professional to prepare your taxes. Using a professional can result in tax savings as well as confidence, knowing it is unlikely there will be mistakes on your return. If you prepare and file your own return, be sure to read through all of the directions and seek out answers for your questions (e.g., at the IRS website,
www.irs.gov).
Generally, the IRS requires that you file a tax return every year. For most taxpayers, the tax year is the same as the calendar year. You will prepare and file your income tax return no later than April 15th of the year following the tax year, unless you request an extension using the IRS Form 4868. Saving and categorizing records of deductions throughout the year will help you be ready to file when the time comes.
There are four ways you can prepare your income tax return.
-
You can prepare it manually with pencil and paper.
-
You can prepare it yourself using tax preparation software on your own computer.
-
You can pay a fee for a tax professional to complete your return using their computer and software.
-
If you meet certain income and other requirements, you can have your tax return prepared free by using IRS Free File.
This booklet will give an overview of the tax forms the IRS provides, and checklists to help you complete your return. It also
explains the differences between doing your return with paper and pencil (manually) and with the help of a computer. It will tell you how to file your form electronically, if you choose to do it that way, and familiarize you with the audit process should the IRS have questions about your return.
